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GOVT TO RAISE REAL ESTATE HOLDING TAX
입력 2020.07.09 (15:07) 수정 2020.07.09 (16:46) News Today
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[Anchor Lead]

The government and the ruling party are strongly determined to raise real estate taxes to tame housing prices. As the first step, they have agreed to raise the comprehensive real estate holding tax to up to 4 percent.

[Pkg]

The government and the ruling party have agreed to raise the comprehensive real estate holding tax to 4 percent maximum for owners of three and more homes as well as owners of two homes in anti-speculation areas. Raising the tax to over 4 percent would trigger strong opposition from real estate owners. Sources say the government and the ruling party have also agreed to either reduce or scrap tax benefits for speculative investors. The measure to eliminate tax benefits will likely affect the market, even if some of them stay.

[Soundbite] REP. KANG BYUNG-WON(DEMOCRATIC PARTY) : "Speculative investors expected to receive tax benefits in the future. Once this bill is passed, all tax benefits will disappear."

The discussion of the increase of the transfer tax is also underway. The previous decision to raise the transfer tax to up to 80 percent for homes owned for less than a year triggered backlash. The Democratic Party faced criticism after presidential chief of staff Noh Young-min said he would sell off his apartment in southern Seoul only after getting rid of his property in Cheongju, which would result in the transfer income tax of roughly 1.2 billion won and the transfer tax of 50 million won. The ruling party is calling for providing transfer tax benefits to those who have owned only one home for a long time but reducing them for the owners of high-end properties regardless of the period of ownership. A similar proposition was made at the previous National Assembly by Democratic Party Rep. Yoo Seung-hee.

[Soundbite] PARK JOO-HYUN(FMR. MEMBER OF PARTY FOR PEOPLE'S LIVELIHOODS(MAR. 2020)) : "After ten years the deduction rate is 80 percent. It's like paying nothing. That's why everyone is buying expensive homes."

However, some of the party members are opposed to the plan, fearing public outrage if the measure is applied to the owners of one home as well.
  • GOVT TO RAISE REAL ESTATE HOLDING TAX
    • 입력 2020-07-09 15:17:29
    • 수정2020-07-09 16:46:35
    News Today
[Anchor Lead]

The government and the ruling party are strongly determined to raise real estate taxes to tame housing prices. As the first step, they have agreed to raise the comprehensive real estate holding tax to up to 4 percent.

[Pkg]

The government and the ruling party have agreed to raise the comprehensive real estate holding tax to 4 percent maximum for owners of three and more homes as well as owners of two homes in anti-speculation areas. Raising the tax to over 4 percent would trigger strong opposition from real estate owners. Sources say the government and the ruling party have also agreed to either reduce or scrap tax benefits for speculative investors. The measure to eliminate tax benefits will likely affect the market, even if some of them stay.

[Soundbite] REP. KANG BYUNG-WON(DEMOCRATIC PARTY) : "Speculative investors expected to receive tax benefits in the future. Once this bill is passed, all tax benefits will disappear."

The discussion of the increase of the transfer tax is also underway. The previous decision to raise the transfer tax to up to 80 percent for homes owned for less than a year triggered backlash. The Democratic Party faced criticism after presidential chief of staff Noh Young-min said he would sell off his apartment in southern Seoul only after getting rid of his property in Cheongju, which would result in the transfer income tax of roughly 1.2 billion won and the transfer tax of 50 million won. The ruling party is calling for providing transfer tax benefits to those who have owned only one home for a long time but reducing them for the owners of high-end properties regardless of the period of ownership. A similar proposition was made at the previous National Assembly by Democratic Party Rep. Yoo Seung-hee.

[Soundbite] PARK JOO-HYUN(FMR. MEMBER OF PARTY FOR PEOPLE'S LIVELIHOODS(MAR. 2020)) : "After ten years the deduction rate is 80 percent. It's like paying nothing. That's why everyone is buying expensive homes."

However, some of the party members are opposed to the plan, fearing public outrage if the measure is applied to the owners of one home as well.
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